Infosys CEO Vishal Sikka's pay slashed by 40 pc
The pay package of Infosys CEO Vishal Sikka, which was one of the contentions raised by the founders, was slashed by almost 40 per cent for the last fiscal.
As per the reports, Sikka has drawn USD 6.68 million (about Rs 43 crore) or 61 per cent of the promised compensation for the 2016-17 fiscal.
Sikka was eligible for a USD 11 million (about Rs 70 crore) pay including basic salary, variable pay, restricted stock units (RSUs) and performance stock options for the year.
Incidentally, this is also lower than what Sikka drew in the previous financial year when he took home Rs 48.73 crore.
According to Infosys financial statements that outline compensation to key executives, Sikka received only USD 3.68 million of the USD 8 million variable component that he was promised.
One of the highest paid executives in the Indian IT industry, Sikka took home USD 0.82 million in variable pay, USD 1.9 million in RSUs and ESOPs worth USD 0.96 million, totalling USD 3.68 million.
Sikkas salary was revised from USD 7.08 million to a handsome USD 11 million package with effect from April 2016, a move that did not go down well with the founders, including NR Narayana Murthy.
The USD 11 million package was to include a base salary of USD 1 million and USD 2 million worth of stock annually as well USD 3 million in variable pay.
Sikka is also eligible for another USD 5 million worth of performance-based equity and stock options upon achievement of certain performance targets.
"The Board, based on the recommendations of the Nominations Committee, approved on April 13, 2017, USD 0.82 million as variable pay to CEO for the year ended March 31, 2017," Infosys said.
It further mentions "...RSUs amounting to USD 1.9 million and ESOPs amounting to USD 0.96 million representing the performance-based equity and stock options for the financial year 2017".
While the founders had raised concerns over the significant salary hike given to Sikka, the Board, on its part, maintained that the variable component was tied to steep performance goals.
However, Infosys has not made those goals public.
Infosys had defended Sikkas pay hike saying all decisions were made "in the overall interest of the company".
Infosys performance of 2016-17 has disappointed the street, especially after it lowered its annual revenue guidance thrice last fiscal.
The "aspirational goal" of USD 20 billion revenue by 2020 set by Infosys looks like a tall order given the current performance, said industry watchers.
The Bengaluru-based firm, which posted a revenue of USD 10.2 billion in 2016-17, has been focussing on new areas like automation and artificial intelligence to bolster its revenues to meet the said target.
For the financial year 2017-18, Infosys expects its revenues to grow by 6.1-8.1 per cent in USD terms.
With PTI Inputs